CFD and Spreadbetting chart differences

ForexHero

Junior member
10 1
How different are the CFD charts to Spreadbetting charts? Is the difference only minimal or significant?

If a person is losing on Spreadbetting then will he also lose on CFDs?

Thanks
 
M

member275544

0 0
Any differences between the charts themselves are going to be negligible if any difference at all. the only difference between the two is going to be a tighter bid and ask price on CFDs. This has certainly been my experience.
and yes, if you're strategy is weak it will be exposed on both. more so on CFDs as there is an additional cost of the transaction.
 
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barjon

Legendary member
10,334 1,574
Any differences between the charts themselves are going to be negligible if any difference at all. the only difference between the two is going to be a tighter bid and ask price on CFDs. This has certainly been my experience.
and yes, if you're strategy is weak it will be exposed on both. more so on CFDs as there is an additional cost of the transaction.
Sure, but some CFD brokers charge commission whereas others include the costs in the CFD spread. So the latter won’t be all that tighter. For the former, if you are facing minimum commission then the wider spreadbet spread twixt bid and ask is still likely to be the cheaper option until you reach an optimum position size.

PS: oh, and if you are going to lose (which is likely) you’ll lose either way.
 

ForexHero

Junior member
10 1
Aren't CFD charts the same as real charts used by a traditional broker. By trading with a traditional broker I mean actually BUY shares rather than just make money predicting movements in price.

It's my understanding that if someone wins money with CFD then it doesn't affect the company that you're trading with. But with spreadbetting, winning affects the company negatively.

PS: oh, and if you are going to lose (which is likely) you’ll lose either way.
Does this also apply to traditional trading?
Do people lose more often on spreadbetting, traditional trading or both the same?
 

tomorton

Legendary member
7,448 1,008
Aren't CFD charts the same as real charts used by a traditional broker. By trading with a traditional broker I mean actually BUY shares rather than just make money predicting movements in price.

It's my understanding that if someone wins money with CFD then it doesn't affect the company that you're trading with. But with spreadbetting, winning affects the company negatively.

Does this also apply to traditional trading?
Do people lose more often on spreadbetting, traditional trading or both the same?

My spreadbetting firm does not even offer spreadbets against the shares of companies that are small enough to be affected by private retail traders' spreadbets - I think the smallest they go is the FTSE250 and some AIM stuff (not all of them even). But if they did offer SB's on micro-cap companies' shares, why would you be concerned with any impact on the company or its share price by your spreadbet?

If you have a winning strategy, it will win regardless of how you access the market. The converse is also true.
 

barjon

Legendary member
10,334 1,574
Aren't CFD charts the same as real charts used by a traditional broker. By trading with a traditional broker I mean actually BUY shares rather than just make money predicting movements in price.

It's my understanding that if someone wins money with CFD then it doesn't affect the company that you're trading with. But with spreadbetting, winning affects the company negatively.

Does this also apply to traditional trading?
Do people lose more often on spreadbetting, traditional trading or both the same?

CFDs are not traded on the stock market. They are derivatives and a contract between you and the provider (your broker) same as spreadbetting.
So far as losing is concerned, both CFDs and spreadbetting are leveraged whereas buying shares is not. So, if you lose you’ll lose more and faster with CFDs and spreadbetting.
 

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